Chapter 29: Designing an effective marketing mix Influences on the Marketing Mix
Influence on MM: Finance • A business’s decision in ANY functional area will be influenced by its financial position • Cash Flow • Discounts • The marketing budget and cost of promotions
Influence on MM: Technology • Technologically advanced product • Sophistication of the organisation’s database (ie: organisations such as Sainsbury’s – through its loyalty card – and Trainline – through previous bookings – gain an understanding of consumers’ tastes and are able to target them with specific offers • Lower costs • Online selling
Influence on MM: Market Research • Provides information to a business, which helps its to adapt its marketing mix in order to gain an advantage: • Level of competition • Availability of substitutes • Consumer opinions • Niche or mass marketing • The market segment
Influence on MM: Other Factors • The relative power of buyers and suppliers • The quality of the promotion • Elasticity of demand • The reputation of the business • The convenience of the location **A good marketing mix needs to be coordinated so that each element supports, and is consistent with, the other parts of the mix.